UBS downgraded KEY to "neutral" from "buy"
KeyCorp (NYSE:KEY) stock has reversed its premarket losses, up 0.6% at $14.03 at last glance and brushing off a bear note from UBS. The firm downgraded KEY to "neutral" from "buy" with a price-target cut to $15 from $16, citing lighter capital positioning following the Federal Reserve's recent bank stress test that could translate to diminished capital return prospects. Currently, 10 of 24 firms in coverage call KEY a "hold" or worse.
The 60-day moving average rejected KEY last week, while pressure emerged at the $14.50 level. Up 46.3% in the last 12 months, the equity also carries a small 2.6% year-to-date deficit.
Over in KeyCorp stock's options pits, puts have been much more popular than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day put/call volume ratio of 1.21 ranks higher than 95% of readings from the past year.
Shorts have been building their positions as well, with short interest up 48.5% in the last month. The 36.43 million shares sold short account for 3.9% of the stock's available float, or nearly three days' worth of pent-up buying power.